Take Two Shares and Call Me in the Morning

The deal announced Thursday between television network CBS and Medscape Inc. caused a drop in other medical Net stocks, including drkoop.com, which had been riding high because of its recent agreement with America Online.

internet.com’s Internet Stock Index ended the day up 7.55, or 1.34 percent, at 569.13. The Nasdaq Composite reached a record level for the second day, up 28.82 to 2771.86, thanks to a rally in tech stocks caused in part by Yahoo!’s earnings statement. The Dow Jones industrial average fell 60.47 to close the day at 11126.89.

CBS announced early Thursday that it will take a 35 percent stake in Medscape. The medical Web site is run by George D.Lundberg, M.D., former editor-in-chief of the Journal of the American Medical Association. Medscape had said last month it was planning to go public, but there was no word on the future of those plans.

drkoop.com (KOOP), which had zoomed up the charts following its $89 million deal with America Online, fell on news of the Medscape/CBS alliance. Its stock closed down 1 11/16 at 31 7/8. Healtheon (HLTH), another competitor of Medscape, fell 5 points to 72 1/16 on the news.

Good news for investors in CMGI Inc. (CMGI). Insiders are planning to sell 100,000 shares of its common stock, and that news drove the price up 1 7/8 to close the day at 119 7/8.

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